While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
==While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
==While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
==While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
When I see the S & P down a massive 92 points and our short position is barely dropping, it makes me want to close the position and move.
As such, I am going to suggest you close the put spread on CDAY.
Here is how to close the trade:
Sell to Close March 20th - $75.00 put @ $3.50
Buy to Close March 20th - $70.00 put @ $1.60
Net credit is $1.90 per spread.
The debit when the trade was initiated was $1.75.
If you traded the suggested 6 lot, the gain will be about $90 for 4 days.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
Like a lot of stocks today, ZEN is oversold.
Because of this, I am going to suggest you close the position and book a small profit.
Here is how you close the deal.
Sell to Close (1) March 20th - $87.50 call @ $2.90. The 1 call will net $290.
Sell to Close (2) March 28th - $87.50 put @ $3.80. The two puts will net $760.
The credit will be about $1,050 based on the position size I suggested yesterday.
The gain will be about $90 for one day.
Unfortunately, IRBT did the worst thing possible for buyers of options. And that is, it did nothing.
I suggested the trade based on the fact that I thought it would follow through to the upside, but that has not happened.
And with the stock trading right around our strike price, going into the last week of expiration, the options will lose time value.
I would prefer to recoup some of the investment.
Let's go ahead and close the deal.
Sell to Close (2) February 28th - $52.50 calls @ $1.10. The 2 calls will net $2.20
Sell to Close (1) February 28th - $52.50 put @ $2.20
The total credit will be $4.40 per straddle.
The total debit when initiated was $7.30 per position, resulting in a loss of $2.90 per straddle.
Based on the suggested 2 lot, the loss will be $580, or under 1% of the nominal portfolio.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to a six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three-day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more
Today I would like to make a suggestion on a debit spread. The stock is Ceridian HCM Holdings, Inc. (CDAY).
CDAY is trading at $74.52 as I write this.
I am going to suggest a trade using the March monthly options. CDAY does not have weeklies, and the March monthlies will allow enough time to see if the stock breaks down.
My suggestion today is this:
Buy to Open March 20th - $75.00 put @ $3.00
Sell to Open March 20th - $70.00 call @ $1.25
Net debit is $1.75 per spread with a maximum gain of $3.25 per spread if CDAY trades below $70.00 by March 20th.
Based on the nominal portfolio, limit the trade to 6 spreads or 1% of the portfolio.